RCL Selling Majority Stake in Pullmantur, CDF

Global cruise vacation company Royal Caribbean Cruises Ltd. (RCL) has entered into a deal with Madrid-based private equity firm Springwater Capital to sell a 51 percent stake in Pullmantur and Croisières de France (CDF) cruise brands.

Under the agreement, the two parties will form a joint venture dedicated to bringing cruise experiences tailored to Spanish and French tourists through the management of the two brands, RCL said.

Furthermore, RCL will have a 49 percent stake, and retain full ownership of the ships and planes currently operated by Pullmantur and CDF, which will be leased into the joint venture. RCL will also provide marine operations services to Pullmantur and CDF through a management agreement.

“Given the signs of recovery we have seen in the Spanish economy, as well as increased interest in cruising from tourists in France, we think this is the right time to bring together the extensive experience of our deeply valued employees at Pullmantur and CDF with the local travel and tourism expertise of the Springwater team,” said Richard D. Fain, Chairman and Chief Executive Officer of Royal Caribbean.

“Springwater’s local management presence in Madrid, coupled with RCL’s long-standing history in cruise operations, will provide the foundation for improved returns in the future.”

The joint venture is expected to be completed later this year, subject to customary closing conditions and regulatory approvals.  Given the markets in which Pullmantur operates, the transaction is expected to have partially offsetting impacts on yields and expenses.  The amount of these impacts will depend on when regulatory approvals are received and the transaction closes, but the net effect on the company’s 2016 bottom line is expected to be neutral to marginally positive.

RCL owns Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises and CDF Croisières de France, as well as TUI Cruises through a 50 percent joint venture. Together, these six brands operate a combined total of 46 ships with an additional ten on order.